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Vote Sets Up Gome for Further Battles

By

Laurie Burkitt

Updated Sept. 28, 2010 12:01 a.m. ET

BEIJING—Gome Electrical Appliances Ltd.'s shareholders rejected a bid by imprisoned company founder Huang Guangyu to unseat the company's chairman but left Mr. Huang as the largest shareholder—all but ensuring further battles over the prominent Chinese retailer's future.

Stockholders on Tuesday narrowly rejected his resolution to replace Chairman Chen Xiao with Mr. Huang's younger sister. But shareholders supported his bid to prevent the company from issuing new stock equal to 20% of shares outstanding, which would have diluted...